Menu
Search
Language
Information for a foreign employer
What is TyEL insurance and when must you take out one?
Under the Finnish Employees Pensions Act (TyEL), as an employer you are obliged to arrange pension provision for the employees you hire. The obligation is the same for foreign companies that operate in Finland.
TyEL insurance provides the employee with pension security. It gives financial security in old age or in the case of disability and the death of a family provider.
As an employer, you must take out a statutory TyEL pension insurance for an employee:
- who is at least 17 years old and
- whose gross salary per month is a minimum of 70.08 euro in 2025 (68.57 euro in 2024).
The upper age limit of the obligation to insure depends on the employee’s year of birth:
- 68 years for those born in 1957 or earlier
- 69 years for those born in 1958–1961 and
- 70 years for those born in 1962 or later.
Take out a TyEL insurance for the new employee, at the latest, after the first salary payment and before reporting the earnings to the Incomes Register.
TyEL contribution
The TyEL contribution is calculated based on the salaries you pay. The TyEL basic contribution rate for 2025 is 25.28 % of the paid gross wages/salaries (25.12 % in 2024). Elo’s basic expense loading fee is added to the TyEL basic contribution. The insurance contribution is reduced by a possible client bonus and Elo’s discounts.
The TyEL contribution consists of employer’s and employee’s shares. The employer withholds the employee’s share from the employee’s monthly earnings and pays the entire contribution to the pension insurance company.
The amount of the employee’s share of the TyEL contribution depends on the age of the employee:
- 7.15% of earnings for those aged 17–52
- 8.65% of earnings for those aged 53–62
- 7.15% for those over the age of 63.
The wage calculator
The wage calculator helps you to estimate the overall costs of hiring employees. The calculator enables you to quickly estimate the overall cost of hiring one or more employees. With only a few clicks, the calculator will provide you with an estimate of the TyEL insurance contributions and other statutory indirect labour costs.
TyEL invoicing
As an employer you are responsible for reporting your employees’ earnings to the Incomes Register within five days from the salary payment date. Based on the salary information retrieved from the Incomes Register, Elo calculates the TyEL insurance contribution and sends the employer an invoice for the TyEL insurance contributions.
Elo sends an invoice for the contributions once per month.
Invoices by e-mail
If you wish to receive invoices by e-mail, please contact our Customer Service.
Customer Service for TyEL insurance matters
tel. +358 20 694 730.
The Incomes Register and earnings payment reports
Employers must report their employees’ earnings to the Incomes Register, which is a national database for payroll information. It contains comprehensive data on earnings, pensions and benefits for each individual. The reported information includes wages and salaries, fringe benefits, fees, remunerations, and other earned income. Also, reimbursements of expenses, both non-taxable and taxable, are reported.
All the paid salaries and wages must be reported to the Incomes Register after each payment within five days from the salary/wage payment day. Elo retrieves the information from the Incomes Register and calculates the TyEL insurance contribution and employees’ pensions.
In order to submit the report to the Incomes Register, you will need Elo’s pension provider code, which is 54 and your insurance policy number (pension policy number) as found in Elo’s Online Service or on your insurance invoices.
Each report submitted to the Incomes Register shall provide the data of a single salary or wage payment made to a single employee. The report can include different income types, such as monetary wages, fringe benefits and kilometer allowances.
Earnings that fall within the scope of TyEL insurance are primarily comprised of the taxable gross salaries/wages of employees.
Read more about which earnings are included in TyEL wages >
More information and how to submit a report to the Incomes Register
Frequently asked questions about Incomes Register >
Identification to the Incomes Register
Foreign companies and foreign representatives of foreign companies (natural persons) use the Finnish Authenticator Identification Service for identification, read more
Employer’s other statutory insurances
As an employer, you are required to take the following statutory insurances for your employees, in addition to TyEL insurance:
- Accident and occupational disease insurance
- Group life insurance
- Unemployment insurance.
Besides the insurance contributions above, employers will also pay the health insurance contributions for their employees to the Tax Administration.
The unemployment insurance provider is the Employment Fund.
Group life insurance
You can easily take the accident and occupational disease insurance as well as group life insurance for example through our insurance partners:
Any further questions?
Elo´s Online Service
The service provides you with everything you need to manage employment pension insurance matters.